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United
States Securities and Exchange Commission
LITIGATION RELEASE
NO. 16849 / January 2, 2001
Securities and Exchange Commission v. Benjamin
Franklin Cook et al.
#3-99CV05701-R, USDC, NDTX (Dallas Division)
On December 20, 2000, the Honorable Jerry Buchmeyer,
U.S. District Judge, Northern District of Texas,
entered a Final Judgment as to Relief Defendant
C. Kelly Olsen. The Final Judgment orders Olsen
to pay disgorgement in the amount of $1,827,933,
plus prejudgment interest in the amount of $333,990.
In its Complaint, filed March 16, 1999, the Commission
alleged that Olsen was unjustly enriched as a
result of his participation in a fraudulent Ponzi
scheme involving the offer and sale of nonexistent
"prime bank" securities. The fraudulent
scheme, developed and operated chiefly by Defendant
Benjamin Franklin Cook, doing business as Dennel
Finance Limited, raised more than $45 million
from approximately 300 investors throughout the
United States. Judge Buchmeyer previously entered
a final judgment against Cook enjoining him from
further violations of the federal securities laws,
ordering him to pay disgorgement in the amount
of $36,724,494 plus prejudgment interest of $5,616,807,
and imposing a civil penalty of $110,000 on him.
Cook was also indicted August 30, 2000 by an Arizona
grand jury on 37 counts of racketeering, fraud
and theft in connection with the Dennel scheme.
Since May 10, 2000, Olsen had been incarcerated
at Seagoville Federal Detention Center in Seagoville,
Texas, after Judge Buchmeyer issued a contempt
order against him for violating the Court's orders
freezing Olsen's assets and requiring him to turn
assets over to a court-appointed receiver. On
December 12, 2000, Olsen finally purged himself
of contempt by providing the Commission and the
receiver with a detailed statement, under oath,
concerning his present assets and his use of Dennel
investor funds. Simultaneously with the entry
of the Final Judgment against Olsen, Judge Buchmeyer
issued an order releasing Olsen from incarceration.
Unscrupulous promoters continue to victimize
the public with Prime Bank schemes. Investors
are advised to access the Commission's "Prime
Bank" Investor Alert which provides tips
on how to avoid being a victim of these scams.
The investor alert can be found on the Commission's
web site, at www.sec.gov/pbank/pbnkhome.htm.
http://www.sec.gov/litigation/litreleases/lr168849.htm
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